Expenses

A wide variety of expenses can be legitimately claimed against your limited company, saving tax in the process. For those contractors caught by IR35, there will now be a 5% general allowance for expenses instead of an unlimited allowance, although you can still claim 'Schedule E' expenses, such as subsistence and pension payments. For contractors using umbrella companies 'Schedule E' expenses can be claimed and some companies offer 'expenses dispensations' which can provide additional tax savings.